US Export Plan - Sector Report - HealthTech & Digital Health

Table: Top Five Priority States for Scotland in the Sector

The table below provides a summary of the top five priority states identified in the Matrix model, which have been cross-referenced with research, analysis and stakeholder engagement.

State: California

Strengths:

• A global hub for digital health innovation, with access to funding and opportunities to upscale.
• Health spending per capita: 10,299
• No. of hospitals: 353
• VC deals in Healthtech: 994
• Health insurance premiums: 212,652,024,983
• Presence of HealthTech businesses: 58

Notable sub-sector opportunities:

AI and data analytics, telehealth, digital therapeutics and chronic care

Key risks/considerations for Scottish exporters:

• Extremely competitive digital health and MedTech ecosystem
• Very high operating and specialist‑talent costs
• Complex regulatory landscape with strict federal and California‑specific data and privacy rules
• Lengthy and costly FDA approval pathways creating barriers for new entrants
• Large health systems favour established vendors, limiting entry for smaller international firms

State: New York

Strengths:

• Strong investment activity, major academic medical centres driving innovation.
• Health spending per capita: 14,007
• No. of hospitals: 158
• VC deals in Healthtech: 502
• Health insurance premiums: 72,438,151,396
• Presence of HealthTech businesses: 31

Notable sub-sector opportunities:

Data analytics, telehealth and virtual care, health IT and cybersecurity

Key risks/considerations for Scottish exporters:

• Intense competition from well‑funded digital health startups, major medical centres and strong VC networks
• Large hospital systems often prefer established vendors, making market entry difficult for smaller overseas companies
• High regulatory scrutiny and strong emphasis on data‑driven healthcare require robust evidence and compliance from exporters
• High operating and staffing costs compared with many other US regions

State: Texas

Strengths:

• Large hospital ecosystem and patient base, with strong partnerships and collaboration.
• Health spending per capita: 8,406
• No. of hospitals: 504
• VC deals in Healthtech: 229
• Health insurance premiums: 121,002,640,038
• Presence of HealthTech businesses: 14

Notable sub-sector opportunities:

Biotech and life sciences, telehealth and remote patient monitoring, health IT and clinical AI

Key risks/considerations for Scottish exporters:

• Highly competitive ecosystem centred around major hospital systems and strong US‑based HealthTech players
• Regulatory and procurement processes influenced by large private health networks, making entry harder for new overseas firms
• Strong local preference for partners with existing clinical relationships in Houston, Dallas or Austin ecosystems
• Increasing expectations for evidence‑based outcomes and integration with large‑scale hospital infrastructure

State: North Carolina

Strengths:

• Combination of top universities, research institutions, major contract research organisations and digital health firms.
• Health spending per capita: 8,917
• No. of hospitals: 110
• VC deals in Healthtech: 102
• Health insurance premiums: 38,431,634,571
• Presence of HealthTech businesses: 4

Notable sub-sector opportunities:

Biotech and life sciences, telehealth and remote patient monitoring, health IT and information exchange

Key risks/considerations for Scottish exporters:

• Highly developed life sciences and CRO ecosystem makes differentiation challenging for smaller exporters
• University‑driven clusters favour firms already embedded in research partnerships or clinical networks
• Competitive landscape for digital health pilots due to strong presence of major research institutions and pharma firms
• Buyer expectations for interoperability, data standards and validated clinical performance are high across the Research Triangle

State: Massachusetts

Strengths:

• Concentrated life sciences hub experiencing strong and accelerating investment activity in the sector.
• Health spending per capita: 13,319
• No. of hospitals: 69
• VC deals in Healthtech: 405
• Health insurance premiums: 22,801,563,801
• Presence of HealthTech businesses: 19

Notable sub-sector opportunities:

Digital diagnostic services, clinical workflow software, remote patient monitoring devices, digital therapeutics

Key risks/considerations for Scottish exporters:

• Increasingly competitive HealthTech-related regulatory requirements
• Data privacy, cybersecurity and interoperability burdens
• Reimbursement and market access complexity
• Need for deep clinical integration with large health systems and research networks, which may favour established US providers